Lundin welcomes Wintershall as partner in PL 359

Lundin Petroleum will sell an additional 15 percent interest in Production Licence 359, offshore Norway, which contains the Luno II discovery.

Lundin Norway will sell a 15 percent interest to Wintershall Norge AS (Wintershall) on the same terms as the PL359 transactions announced on 17 June 2014.

To remind, on June 17, Lundin Norway announced it would acquire a 30 percent interest from Premier Oil for a cash consideration of USD 17.5 million and at the same time will sell a 5 percent interest to OMV (Norge) AS. The effective date for both transactions is 1 June 2014.

The Luno II discovery was made by Lundin Petroleum in 2013 and is located in PL359 in the central North Sea sector of the Norwegian Continental Shelf on the south western flank of the Utsira High approximately 15 kilometres south of the Lundin Petroleum-operated Edvard Grieg field. An appraisal well is currently being drilled.

PL359 also contains numerous drill-ready exploration prospects and the next exploration well on the licence is likely to target the stacked Luno II North and Fignon prospects, estimated to contain gross unrisked prospective resources of 46 MMboe.

Ashley Heppenstall, President and CEO, commented; “We are pleased to welcome Wintershall as a partner into PL 359 containing the Luno II discovery and additional interesting prospectivity. This deal ensures the equalisation of licence interests in PL359 and PL338 which includes the Edvard Grieg development project.”

This transaction, as well as the transactions announced on the 17th June 2014, remain subject to Norwegian government approval.

Lundin Norway is the operator of PL359 and following completion of the transactions will have a 50 percent interest. Statoil Petroleum ASA has a 15 percent interest and following completion of these transactions, OMV Norge will have a 20 percent interest and Wintershall will have a 15 percent interest.